Friday, November 22, 2024

Comcast is exploring separation of cable networks business

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Comcast is exploring a separation of its cable networks business, President Mike Cavanagh said Thursday.

During the company’s third-quarter earnings call with investors, Cavanagh said the company is exploring creating “a new, well-capitalized company owned by our shareholders and comprised of our strong portfolio of cable networks.”

The possible separation would not include broadcast network NBC nor streaming service Peacock, he added. NBCUniversal’s cable networks portfolio includes Bravo, E!, Syfy, Oxygen True Crime, USA Network, as well as news networks MSNBC and CNBC.

The company lost 365,000 cable TV customers during the third quarter.

“Like many of our peers in media, we are experiencing the effects of the transition in our video businesses and have been studying the best path forward for these assets,” Cavanagh said.

“We are not ready to talk about any specifics yet, but we’ll be back to you as and when we reach firm conclusions,” he said.

Shares of Comcast were up more than 6% in premarket trading.

The comments come as millions of customers continue to flee the traditional pay TV bundle in favor of streaming. Comcast has been beefing up Peacock, which got a boost during the third quarter when it exclusively aired the Summer Olympics in Paris.

Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.

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